option or assignment?

Bird Dogs, Wholesaling
1

I have a condo that I’m interested in. The owner owes 105k. The house needs 3k in repairs and the owner would like 2k. The condo is worth around $130k. Not worth it to buy it and then flip (bank fees, closing cost, holding cost, HOA fees etc). But there’s also 15k to 20k just sitting there.

Here what I’m thinking

  1. Is there a way where I can do an option to buy and then find a buyer at $125? PP would be $125; the net sheet would show 105 going to bank, 2k going to seller, 3k going to new buyer for repairs and 15k going to me for my foreclosure services.
  2. I could do an assignment for contract but don’t you usually do that when the assignment fee is small (up to 5k).

I’m starting to come across properties with some equity 10k to 20k. After doing numbers it doesn’t make sense to buy it my self because of closing cost, bank fees etc. There’s no problem with me getting the owners to sell low. There’s no problem finding buyers, I just don’t know how to position my self. If I have to, I will just assign the contract for 5k or what ever I can get from the buyer but I would like to know how I can pull out more. If I do assign the contract and don’t get paid until the closing, how do I make sure I get my money? I assume I must put something in the contract. Who notifies me of the closing date?
Thanks

2

Is the property listed with a real estate agent? If so, you would have that cost once closed with a buyer that you assign to.

3

Condo is not listed with a real estate agent. I don’t understand the second part of your message. If you’re saying I would have to pay the agent, I would have budged for that. I’m working on doing the same thing with another house except I will be using a re agent to find a buyer. I have factored in her fees but I’m still unsure how to put it all together so that I get a big check at the closing
Thanks

4

if it is not listed with an agent and/or you did not have a buyer’s rep agreement to pay an agent representing you then there is no agent to pay. my point was, if it is listed with an agent, the seller would owe listing agent out of proceeds at closing. if you had an agent show you and rep you in the purchase, even if you then found another buyer, you would owe an agent. if there are no agents there are no agents.

5

Why not just assign the contract? What difference does it make if you assign it for >5k or <5K?